RVNL Bags ₹554 Crore Highway Project, Stock Gains 2%

Rail Vikas Nigam Limited (RVNL) witnessed a 2.4% rise in its share price during early trading on Friday, reaching an intraday high of ₹366. The surge in stock value came after the company announced that it had secured a significant contract worth ₹554.64 crore from the National Highways Authority of India (NHAI). This latest contract win further strengthens RVNL’s position in the infrastructure sector, reflecting its continued involvement in major national projects. Investors reacted positively to the news, driving up the stock price as trading commenced for the day.

Rail Vikas Nigam Limited (RVNL) has been awarded a significant contract for the construction of a six-lane access-controlled road aimed at enhancing connectivity to the Visakhapatnam Port in Andhra Pradesh. The project, valued at ₹554.64 crore, is expected to play a crucial role in improving regional trade and transportation efficiency by facilitating smoother movement of goods and vehicles to and from the port.

In an official filing to the stock exchanges, RVNL confirmed that it had received the Letter of Acceptance from the National Highways Authority of India (NHAI) for this project. The construction work will cover a stretch from Km 0.000 at Sabbavaram bypass, part of the Anakapalli-Anandapuram corridor, to Km 12.660 at Sheelanagar Junction on National Highway 516C. The project will be executed under the Hybrid Annuity Model (HAM) as part of the National Highways (O) initiative.

The development of this high-speed corridor is expected to significantly enhance logistical efficiency, reduce travel time, and contribute to the overall economic growth of the region by strengthening port connectivity.

As per the company’s regulatory filing, the newly awarded project will cover a total stretch of approximately 12.66 kilometers, starting from Km 0.000 at the Sabbavaram Bypass, which is part of the Anakapalli-Anandapuram corridor, and extending up to Km 12.660 at Sheelanagar Junction on National Highway 516C. This strategic road development is designed to enhance connectivity and streamline traffic flow, particularly for vehicles traveling to and from the Visakhapatnam Port. The project aims to support efficient transportation in the region by improving access to key commercial and industrial hubs.

The awarded contract will be carried out under the Hybrid Annuity Model (HAM), a public-private partnership (PPP) framework designed to distribute project risks more equitably between the government and private entities. Under this model, the government provides partial funding, while the remaining investment comes from private players, ensuring efficient project execution with shared financial responsibility.

The project is expected to be completed within a timeframe of 730 days, aligning with India’s broader efforts to accelerate infrastructure development across the country. By securing this contract, Rail Vikas Nigam Limited (RVNL) further strengthens its presence in the transportation and infrastructure sector, reinforcing its role in executing large-scale national projects that contribute to economic growth and connectivity.

The share price of Rail Vikas Nigam Limited (RVNL) has shown a mixed performance over different timeframes. Over the past year, the stock has demonstrated substantial long-term growth, rising by 49.69%. This indicates a strong upward trend over a 12-month period.

However, in the more recent months, the stock has experienced a decline. On a year-to-date (YTD) basis, RVNL’s share price has fallen by 16.30%, reflecting some downward pressure since the beginning of the year. The decline has been more pronounced over the last six months, with the stock dropping by 34.21% during this period.

In the past three months, the share price has continued to decline, registering a decrease of 17.31%. Additionally, in the most recent one-month period, the stock price has dipped by 6.11%, suggesting a short-term bearish sentiment in the market. These fluctuations highlight the stock’s varying performance across different time horizons, influenced by market trends and external factors.